Adani Group bonds were under pressure for a second session after US authorities indicted Gautam Adani for allegedly engaging in a $265 million bribery conspiracy.
Following the prosecution of group chairman Gautam Adani by US prosecutors over an alleged $265 million bribery plot, Adani Group bonds were under pressure for a second consecutive session on Friday, November 22, 2024, according to a Reuters report.For example, bonds issued by Adani Ports and the Special Economic Zone that mature in 2027 were worth 92 cents on the dollar, while bonds with longer maturities were worth about 80 cents.
The group's efforts to reassure investors that it was a "law-abiding organization," denounced the claims as "baseless and denied," and promised to pursue "all possible legal recourse" were unsuccessful.
"Across all jurisdictions in which it operates, the Adani Group has consistently upheld and remains resolutely committed to upholding the highest standards of governance, transparency, and regulatory compliance," the statement read. "We reassure our partners, stakeholders, and staff that we are a law-abiding organization that complies with all applicable laws."
According to the report, eight individuals have been charged by US prosecutors with agreeing to pay approximately $265 million in bribes to Indian government officials in order to secure contracts that could generate $2 billion in profit over the course of 20 years and to build India's largest solar power plant project.
According to the newspaper, the prosecution also claimed that Gautam Adani, his nephew Sagar Adani, and former CEO of Adani Green Energy Vneet Jaain had concealed wrongdoing from investors and lenders in order to raise more than $3 billion in loans and bonds.
More significantly, this resulted in Kenya terminating a roughly $2 billion agreement that would have allowed the Adani Group to take over the nation's primary airport.
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